What Are My Employee Health Insurance Options in California?

January 14, 2020

When you’re running a small business, achieving success remains your main priority and a key component is providing your workforce with attractive employee health insurance options. When you offer medical benefits to your workforce, you help keep your employees both healthy and loyal.

Offering small business health insurance benefits will help you attract the right talent to your company. In this post, we’re going to provide easy to understand guidance regarding the health insurance options available to small businesses in California.

The Cost Challenges in Reviewing Employee Health Insurance Options

When you need to offer benefits to your workers, there are a number of challenges to face. If you have tight profit margins and only a few workers, finding the right group coverage for your budget in California is a challenge. The cost of medical coverage is on the rise. You also have to think about dependents, and who qualifies as a dependent for group health coverage.

Even group plans are becoming more costly. Looking at the different costs with employee health insurance options can seem very discouraging. However, if you fail to offer health-care benefits, the chances of recruiting the best talent are lower.

Finding Employee Health Insurance Options to Suit Your Workforce

Finding the one plan that suits all your workers’ needs can prove very challenging. However, if less than 50 people are working for your business, you may not need to find one plan.

You could allow your employees to buy healthcare plans themselves but set up reimbursement arrangements, or health-care savings accounts (HSA’s). You may also want to look into plans that offer employee wellness programs, which are growing in popularity, especially in California.

Association Health Plans

No matter how many workers you have, small businesses are able to join with other companies in an AHP. This allows you to insure your employees at a lower cost and with better options.

SHOP (Small Business Health Options Program)

Companies with one to 50 workers can use SHOP. The system is for small businesses that want to offer coverage to all full-time workers. Seventy percent of your employees need to sign up for the coverage for your business to qualify.

SHOP gives you greater flexibility so you can offer your Californian workforce a number of options. This is ideal if you have a staff of various ages. On the other hand, if your whole team is young and healthy, a single low-cost employee health insurance plan could work best.

Self-Insurance

Anyone running a small California business who has young, healthy workers may choose to self-insure. It’s an option that could save money. However, it also puts you at risk.

You may end up having to pay the health-care costs of employees who have suffered a major illness or accident. You may also need to pay fees to the IRS if you self-insure. You can find a solution to this, though. Stop-loss insurance can cover you and your business if you end up having to pay a large sum.

HSAs

HSAs, or Health Savings Accounts, allow contributions both from the worker and employer. Funds held in an HSA can cover copayments, deductibles, and other non-covered expenses. HSAsprovide workers with an untaxed, individual fund to cover health-care bills. HSAs often pair with a high-deductible insurance plan.

FSAs

FSAs, or Flexible Spending Arrangements, contain funds that an employee must use during that year. FSAs involve withholding funds from the employees’ paychecks before tax. The withheld funds go straight into an FSA. Employees can contribute to this fund, but there is a limit to how much. Employees may be able to carry $500 or less over to the next year. However, this is at the employer’s discretion.

QSEHRA

QSEHRAs, or Qualified Small Employer Health Reimbursement Arrangements, are ways of helping workers to pay for their chosen health coverage. Employers reimburse their employees’ premiums, but employees are unable to contribute to this type of plan.

Getting A Quote for Your Business for Employee Health Insurance Options

If you’re running a small business in California, you may need some advice about your employee health insurance options. As you can see, there are many different options open to you. You will, therefore, need to choose the one that best suits your needs and the needs of your workforce.

Whatever type of business you’re running, choosing the best plan is vital. Offering appropriate medical coverage is important, not only for employees but for employers too. Contact Preferred Insurance in California today. We can help you determine the various options that are available for your business. We offer a wide range of providers and plans, so we can help you get the coverage you need.